HBS Guides · Licences
The licence follows
the activity.
You do not choose a licence type in Dubai; your activity chooses it for you. What you do choose is the activity list, and that is the decision that quietly limits what you can invoice for.
Key figures
Licences and permits
The four families
Every activity on the approved list maps to a licence family. The family determines what else you need: a professional licence rarely needs much beyond the licence itself, while a commercial one trading physical goods drags in customs registration, and an industrial one drags in a good deal more.
The activity list is the real decision
The licence type is a consequence. The activity list attached to it is the choice, and it is read literally. If your licence covers management consultancy and you invoice for software development, that invoice is outside your licence — which matters at audit, at the bank, and when a client's procurement team checks your trade licence before paying.
Two rules that save money later. Add the activities you will plausibly need within two years at the outset, because adding them later means an amendment fee and, sometimes, a different licence family. And do not add dozens speculatively: some combinations force a higher-tier licence or trigger an approval you do not want.
Certain activities cannot be combined at all. Trading and professional services usually sit under different licences, and a business doing both often needs two licences or a restructure.
External approvals, and what they cost in time
The licence application itself is fast. What extends it is a sector regulator with its own file to review, and whether one applies is a function of the activity, not the zone.
| Activity | Typical additional approval | Effect on timing |
|---|---|---|
| Clinics and medical services | Health authority licensing, per practitioner | Substantial — plan in months |
| Food and restaurants | Food safety, municipality inspection of premises | Tied to the fit-out, not the licence |
| Media and advertising | Media regulator approval | Weeks |
| Education and training | Education authority permit | Weeks to months |
| Transport and logistics | Transport authority permit | Weeks |
| Real estate brokerage | RERA registration and broker cards | Weeks, plus individual exams |
The pattern worth internalising: activities touching public health, public safety, public messaging or money get a second regulator. Everything else usually does not.
The freelance permit
A freelance permit licenses you, not a company. You invoice in your own name under a permit issued by a free zone, and it is materially cheaper than a company licence.
It fits a single professional selling their own time — a developer, a designer, a consultant, a photographer. It does not fit a business that needs to hire, hold significant contracts in a corporate name, or present as a company to enterprise procurement teams, which frequently will not onboard an individual.
Most permits can sponsor a residence visa for the holder, and some allow family sponsorship. The usual progression is a freelance permit in year one and a company once there is a second person or a client who insists on contracting with an entity. Moving from one to the other is straightforward; what is not straightforward is novating a set of signed contracts, so plan the switch at a renewal rather than mid-engagement.
Renewals, amendments and lapses
Licences run for a year. Renewal is administrative provided the underlying pieces are current — the tenancy registration, the establishment card, and any external approval all have their own expiry dates, and a lapse in any of them blocks the renewal.
A lapsed licence is not a neutral state. Fines accrue, visas attached to the company are affected, and the bank may freeze the account on a compliance check. Recovering from a long lapse costs considerably more than the renewal did.
Amendments — adding an activity, changing shareholders, moving premises, changing the name — each have their own process and fee. Batch them where you can: several changes submitted together usually cost less in fees and far less in time than the same changes made one at a time across a year.
Licences, approvals and renewals are handled at /en/corporate-services/company-formation/, and the filings that follow from them in the tax guide.
FAQ
Questions we are asked
What is the difference between a commercial and a professional licence?
Can I add activities to my licence later?
Is a freelance permit enough to get a residence visa?
How long is a Dubai licence valid?
Do I need approval from a regulator?
Licences with HBS
Send us the activity, we will send back the licence.
Describe what you will invoice for in plain language. We map it to the activity list, tell you which approvals apply and what the timing looks like.
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